AXA net income climbs 6% YoY in H1 2024

Thanks to higher underlying earnings and net realised capital gains.

AXA’s first half (H1 2024) net income climbed 6% year-on-year (YoY) to €4.02b ($4.38b), largely due to higher underlying earnings and net realised capital gains, though this was partially offset by impairments linked to Reso Garantia.  

The company also recorded a 7% YoY increase in total gross written premiums and other revenues, attributable to strong performances across its Property & Casualty (P&C), Life & Health, and Asset Management divisions.  

P&C premiums rose 7%, driven by a 7% increase in Commercial lines due to favourable pricing and higher volumes, particularly at AXA XL Insurance.  

Personal lines saw a 6% increase in premiums, driven by favourable pricing, though this was partly offset by lower volumes in Germany and the UK as the company took measures to restore profitability.  

AXA XL Reinsurance posted a 10% increase in premiums, benefiting from both favourable pricing and higher volumes.  

Life premiums were up 7%, with General Account (G/A) Savings products growing 12%, notably due to strong sales in Japan.  

Unit-linked products saw an 11% increase, reflecting recovery in Italy and strong performance in France.  

Protection premiums increased by 3%, and Health premiums grew 7%, with strong performance across individual and group businesses in most geographies.  

Underlying earnings per share also increased by 4% to €1.87 ($2.04), boosted by share buy-backs but partially offset by unfavourable foreign exchange impacts and higher financial charges.

Outlook

AXA's management remains confident in achieving the company's financial targets. These targets include underlying earnings per share growth of 6-8% CAGR between 2023 and 2026, a return on equity of 14-16% between 2024 and 2026, and cumulative organic cash upstream of over €21b ($22.89b) for the same period.  

The company expects continued favourable pricing conditions in Property & Casualty, supporting strong underwriting margins in Commercial lines and improving margins in Personal lines.  

In Life & Health, the recovery in the technical margin for UK Health is expected to persist through the second half of 2024, driven by ongoing price increases and underwriting measures.  

AXA also reaffirmed its capital management policy, targeting a total payout ratio of 75%, which includes a 60% dividend payout ratio and an additional 15% from annual share buy-backs.  

The company plans to maintain a dividend per share floor, ensuring that the proposed dividend will be at least equal to the prior year's payout.

($1.00 = €0.91)